Maybe you’re not all that interested in a tablet — not even a shiny new 7-inch Nexus device that are priced to move. Perhaps all you’re really after is a newer, speedier smartphone that will finally let you ditch your outdated featurephone without breaking the bank — or forcing you into a lengthy contract to secure a discount. If that’s the case, MediaTek’s latest processor might make your dream of a cheap-but-capable upgrade a reality. How cheap? How does $200 for a brand new Android smartphone off-contract sound?

The MT6577 processor isn’t capable of competing with beasts like the quad-core Tegra 3 or Qualcomm’s S4 chips, but it provides a good mix of performance and value. MediaTek has packed in dual 1GHz ARM Cortex-A9 cores and a PowerVR SGX Series 5 GPU for added multimedia muscle. They’ve also bundled their own tried-and-tested 3G/HSPA modem, and the whole package is ready to run Android 4.0. It’ll handle cameras up to 8MP and can output 1080P video on displays up to a 1280 x 720 resolution.

That should make the MT6577 an appealing option for manufacturers who want to offer up low-end phones with performance and features that are more on par with mid-range Android offerings. As Engadget notes, several manufacturers have built devices with MediaTek chips before — including ZTE, Lenovo, and Gigabyte. While they may not have the same amount of street cred as Samsung or HTC, they could certainly leverage the MT6577 to make inroads in emerging markets — or in more established markets by offering up some slick, cut-price pay-as-you-go Android smartphones.